Working Smarter. Putting Best Practices to Work: Transforming Logistics Capability into Readiness at the Marine Corps Maintenance Centers

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1 Working Smarter Putting Best Practices to Work: Transforming Logistics Capability into Readiness at the Marine Corps Maintenance Centers Maj Don Humpert, USMC

2 The Problem Example: MK-48 Power Unit Fielded in 85 Planned SLEP never happened Wearing Out Of about 1700 fielded, only 330 have been rebuilt or through enhanced IROAN

3 The Depot Contribution Rebuilt/E-IROAN 100% 95% Average 12% Higher Readiness 90% Readiness (R-Rating) 85% 80% 75% 70% 65% No Depot/ Bare-Bones IROAN 60% 1/7/00 4/7/00 7/7/00 10/7/00 1/7/01 4/7/01 7/7/01 10/7/01 1/7/02 4/7/02 Report Date Enhanced LVS Power Unit Non-Enhanced Power Unit (Minus MPS/NALMEB Fleet)

4 And Average Annual OpFor Hours in Maintenance per Vehicle "Enhanced" "Non-Enhanced"

5 But Rebuild too expensive E-IROAN not cheap either Production (ahem) sluggish

6 The Challenge Increase Throughput and make schedule without increasing Operating Expenses or sacrificing quality ISO Lean TOC MRPII

7 Theory of Constraints **Five Focusing Steps** 1. Identify the Constraint 2. Exploit the Constraint 3. Subordinate everything else to the Constraint 4. Elevate the Constraint 5. Go back to step one (Avoid Inertia)

8 Drum-Buffer-Rope ASSEMBLY BUFFER Process 1a Process 1b Process 1c Material Release ASSEMBLY Process 3 SHIP Process 2a Process 2b THE CONSTRAINT SHIPPING BUFFER CONSTRAINT BUFFER

9 Simplified DBR Process 1a Process 1b Process 1c Material Release ASSEMBLY Process 3 SHIP Process 2a Process 2b Process 2c SHIPPING BUFFER OK Act

10 Production vs. Project Production: Lots of queue time relative to touch time Usually waiting for something to start Usually decrease RCT by reducing time in queue Project: Little queue time relative to touch time Usually waiting for something to finish Decrease RCT by removing safety time built into individual tasks

11 Critical Chain Solution Use safety time for the whole project, not individual tasks Reduce WIP Don t batch inductions Stop multi-tasking Buffer Management

12 Tasks Step 1: Tasks arranged in chronological order

13 Remove Safety Time Step 2: Safety time removed from individual tasks.

14 Resource Assignments Step 3: Resources are assigned to each task

15 Resource Sync Step 4: Resource demands are de-conflicted

16 Critical Chain Critical Chain Step 5: Critical Chain is identified

17 Project Buffer Critical Chain Step 6: Project Buffer added 50% of critical chain touch time, rule of thumb

18 Feeding Buffers Feeding Buffer Step 7: Feeding Buffers are placed between Critical Chain and non-critical Chain activities

19 Capacity Buffers % of Drum touch time (8 days) used as Capacity Buffer Drum resource used to determine Capacity Buffer between projects

20 Critical Chain + SDBR Feeding Buffer Project Buffer Shipping Buffer Process 1a Process 1b Process 1c ASSEMBLY Process 3 SHIP New Materials Process 2a Process 2b Process 2c Capacity Buffer

21 Production Management = (A)(Schedule) + (pull system) Critical Chain project management Simplified Drum-Buffer-Rope production Theory of Constraints thinking MRPII engine

22 Implications for MRP Create Critical Chain in usual way Modify item masters, routers and BOMs to reflect the new lead times, routes and BOM indentures Create Project Level Work Order and route using the CC schedule Run MRP to time phase materials and create a dispatch list and shop orders with CC priorities Create Immediate Action report for SDBR and Project Buffer Status report for CC to manage by buffers

23 Result Push (MRP) Pull (MRPII+TOC) RCT WIP Throughput

24 Maintenance Center Albany

25 Repair Cycle Time Days Articulation Hitch Problems FY-00 FY-01 FY Vehicle Number

26 Labor Hours Hours FY-00 FY-01 FY-02 Vehicle Number

27 Engine RCT Days Vehicle Number FY-00 FY-01 FY-02

28 Engine Labor Hours Hours FY-00 FY-01 FY-02 Vehicle Number

29 Lean Thinking 6S Concept Sort: Get rid of what s not needed. Be ruthless. Straighten: Organize what belongs (Parts and Materials). Scrub: Clean everything (Equipment, Floors, and Walls). Standardize: Assign tasks. How will you keep your shop clean and organized and who will do it? Safety: + ALWAYS put safety first! + Sustain: Audit shops. Create checklist.

30 Cable Shop Before

31 Cable Shop After

32 Body Shop Before

33 Body Shop After

34 MK-48 Readiness Contribution What-If per month per depot 167 days/vehicle $152K /vehicle What-If per month per depot 51 days/vehicle $120K /vehicle General, for $137M we could raise readiness 12%, but it will take 19 years General, for $108M we could raise readiness 12%, in 2 years

35 And Not Just MK-48s Production Line Before Critical Chain Actual MK LAV MK14 Trailer MK15 Trailer MK16 Trailer MK17 Trailer M931 5-ton M936 Wrecker * M970 Refueler M149A2 Water Trailer M88 Tank Retriever AAV P & C Variants No data ** *** *No current production line. **AAV hull repair and assembly after receipt of hull from UDLP. ***The AAV critical chain has been established to cover the work performed after the hull has been modified by UDLP

36 WIP Reduction Production Line Before TOC Target Actual MK LAV MK14 Trailer MK15 Trailer MK16 Trailer MK17 Trailer M931 5-ton M936 Wrecker 6 0 0* M970 Refueler ** M149A2 Water Trailer M88 Tank Retriever AAV P Variant AAV C Variant *Production line completed. **Awaiting one part to complete; received 23 Aug 02.

37 to be continued Questions? Maj Don Humpert, USMC DSN , Comm (229)

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